China Hits Back at Trump’s Tariffs with New Trade Restrictions, Agricultural Levies

China swiftly retaliated against the latest U.S. tariffs, announcing new levies of 10% to 15% on a wide range of American agricultural and food products while placing 25 U.S. firms under export and investment restrictions.

The move comes in direct response to President Donald Trump’s fresh tariff hikes, which took effect Tuesday, imposing a cumulative 20% duty on Chinese imports. The White House has framed its tariffs as a punitive measure against Beijing for what it claims is Chinese inaction in stopping the flow of fentanyl-related chemicals into the U.S.—an accusation that China has repeatedly denied.

A vendor works to unpack merchandise at Yiwu International Trade Market in Yiwu, Zhejiang province, China, February 9, 2025. REUTERS/Go Nakamura

China’s Countermeasures: Higher Tariffs on U.S. Agriculture

Beijing’s latest tariffs will take effect on March 10 and include:

• 15% additional tariffs on U.S. chicken, wheat, corn, and cotton
• 10% additional tariffs on soybeans, sorghum, pork, beef, seafood, fruits, vegetables, and dairy products

These new levies further tighten restrictions on U.S. agricultural exports, a critical sector that was already hit hard by Trump’s first-term trade war, which cost American farmers billions in lost sales and market share to competitors like Brazil.

China Condemns U.S. Tariffs, Calls for WTO Compliance

In a strongly worded statement, China’s Commerce Ministry accused the U.S. of violating World Trade Organization (WTO) rules and undermining bilateral trade relations.

“The U.S.’s unilateral tariff measures seriously violate WTO regulations and weaken the foundation of economic and trade cooperation between our two countries,” the ministry said. “China will firmly safeguard its legitimate rights and interests.”

Meanwhile, Beijing’s Finance Ministry reinforced its stance, emphasizing that the tariff hikes are a direct response to Washington’s actions and warning of further countermeasures if tensions escalate.

The YM Bamboo, a container ship operated by the China Ocean Shipping Company (COSCO) is docked at the Port of Oakland in Oakland, California January 14, 2011. Chinese President Hu Jintao will bring new business deals and possible commitments to buy U.S. beef and software when he visits Washington next week, the U.S. Chamber of Commerce said on Friday. REUTERS/Beck Diefenbach (UNITED STATES – Tags: BUSINESS)

Escalating Trade War and Economic Fallout

The latest trade restrictions add another layer of uncertainty to an already strained relationship between the world’s two largest economies. U.S. financial markets reacted negatively, with global stock indexes slipping as investors braced for economic fallout.

American farmers, who depend on exports to China, are expected to bear the brunt of these new restrictions. Experts warn that higher tariffs could drive up food prices, disrupt supply chains, and intensify fears of a broader economic downturn.